Withdrawal of Clearing Membership

Notice of Withdrawal. A Clearing Member may request to begin the withdrawal process as a Clearing Member upon written notice in a form and manner specified by the Clearinghouse. The Clearinghouse will process the formal withdrawal request within 30 days of receipt of the withdrawal form. Within or prior to the 30-day period, the Clearing Member will remain subject to all obligations of a Clearing Member under the Rules.

Obligations During Withdrawal. A Clearing Member that has provided the Clearinghouse with notice that it seeks to withdraw its status is subject to the following requirements, obligations and provisions:

1. the Clearing Member must use all reasonable efforts to close-out all of its house and, where applicable, customer open positions;

2. after notifying the Clearinghouse, the Clearing Member shall only be entitled to submit transactions for clearing which can be demonstrated to have the overall effect of reducing open positions in any Contract or risks to the Clearinghouse, whether by hedging, novating, transferring, terminating, liquidating or otherwise closing out such positions;

3. the Clearinghouse may call for additional Margin until such time as all of such Clearing Member's open positions have been terminated, and such Clearing Member shall provide such additional Margin to the Clearinghouse as is requested in a timely manner;

4. the withdrawing Clearing Member may be obligated to participate in default auctions; and

5. if there is a default, the withdrawing Clearing Member in question shall remain liable for any unapplied assessments.

Withdrawal from Participation in a Board of Trade. A Clearing Member that withdraws from participation in a Board of Trade must provide prompt written notice of the withdrawal to the Clearinghouse. The notice shall identify the Board of Trade from which the Clearing Member is withdrawing and state whether the Clearing Member also seeks to withdraw as a Clearing Member.

1. If the Clearing Member seeks to withdraw only from such Board of Trade and to remain a Clearing Member, the requirements of Rule 805.2 shall apply with respect to the Clearing Member's open positions in Contracts executed on such Board of Trade. The Clearing Member shall remain subject to all other obligations of a Clearing Member under the Rules.

2. If the Clearing Member also seeks to withdraw as a Clearing Member, the notice shall be processed in accordance with Rule 805.1 and Rule 805.2.

Effectiveness of Withdrawal; Release of Clearinghouse-Held Assets.

1. A Clearing Member's withdrawal as a Clearing Member shall not become effective, and the Clearinghouse shall not release any Margin, Collateral, Guaranty Fund contribution, or other assets of the Clearing Member held by or pledged to the Clearinghouse, until the Clearinghouse determines that:

   1. all open positions of the Clearing Member at the Clearinghouse have been closed out, transferred, or otherwise terminated;

   2. all amounts owed by the Clearing Member to the Clearinghouse, including settlement variation, Margin, Guaranty Fund contributions, assessments, fees, and any other financial obligations, have been paid in full;

   3. all obligations of the Clearing Member to other Clearing Members or Customers arising from Contracts cleared by the Clearinghouse have been satisfied or otherwise provided for; and

   4. any arbitration or disciplinary proceedings under Chapter 6 to which the Clearing Member is a party have been resolved or such obligations have been otherwise provided for.

2. The Clearinghouse shall not release any such assets prior to the 60th day following the date the Clearinghouse provides notice of the Clearing Member's withdrawal, provided that the Clearinghouse may, in its sole discretion, grant an exemption to this holding period for good cause shown.

3. Where a Clearing Member has provided notice under Rule 805.3 to withdraw from participation in a Board of Trade but to remain a Clearing Member, the conditions of this Rule 805.4 shall apply only with respect to obligations and assets related to such Board of Trade.

Irrevocability and Reinstatement. Any withdrawal notice issued by a Clearing Member shall be irrevocable by the Clearing Member, and the Clearing Member may only be reinstated pursuant to a new application following the close-out of all of its house and, where applicable, customer open positions.